With a fixed rate loan, your monthly payment of principal and interest never change for the life of your loan. Your property taxes may go up or down, as might your homeowner’s insurance premium, but the actual mortgage itself stays the same. So generally, with a fixed rate versus adjustable rate, you can expect a very stable payment. This is the most common mortgage cause let’s face it, who likes their payment to go up.

Fixed-rate loans are available in all sorts of shapes and sizes 30-year, 20-year, 15-year or even 10-year duration. Some fixed rate mortgages are called “biweekly” mortgages and shorten the life of your loan. You pay every two weeks, a total of 26 payments a year, which adds up to an “extra” monthly payment every year.

During the early amortization period of a fixed rate loan, a large percentage of your monthly payment goes toward interest and a much smaller part toward principal. That gradually reverses itself as the loan ages.

You might choose a fixed-rate loan if you want to lock in a low rate. If you have an Adjustable Rate Mortgage (ARM) now, refinancing with a fixed rate loan can give you more monthly payment stability.